March 30, 2017

End Of The Road?

End Of The Road?

Sanand town produced only 515 Nanos last month and sold only 391 of those. It continues to make the Tiago model of the Tata group which is expected to reach over 5,000 cars on a monthly basis. However its flagship product, the Nano has almost faded into oblivion.

Cumulatively, between April 2016 and January 2017  Tata produced only  7,472 Nanos, down 62 per cent from 19,686 cars in 2015. A total of 7,105 Nanos were sold during the April-January period in 2017, a decline of 62 per cent.

Overall, the company saw its sales rise to 44 per cent to 1,04,395 units for the compact segment, which includes Indica, Indigo CS, Zest, Bolt and the Tiago.

Enquiries concerning the Nano seem to have declined with the AMT variant triggering a good response with a strong demand for this version as a second car. It also enjoys some popularity among college students.

Despite that the Nano seems unlikely to be discontinued soon as it apparently enjoys popularity among taxi operators.

While the Nano had always struggled to gain momentum, with launch of automatic manual transmission (AMT) and other peppy city variants, sales have risen since 2015.

The GenX Nano has a power steering, stylish interiors and comes with an AMT variant which was launched in May 2015. Tata Motors ended FY16 selling 21,012 Nanos, up from 16,901 in 2015.

Sales, however,started falling after that and so far have’nt shown any sign of revival. Whether Tata would consequently now shift focus remains to be seen.

A company source said the hatchback segment remained important for the company and regulations and customer preferences are likely to play a major role in defining the company’s corporate strategy.

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